Stocks Fall on Export Worries 06/25 09:21
U.S. stocks are falling Monday morning following losses in Europe and Asia,
and technology companies are skidding after The Wall Street Journal reported
that the Trump administration plans to limit high-tech exports to China and
will limit Chinese investment in American technology companies.
NEW YORK (AP) -- U.S. stocks are falling Monday morning following losses in
Europe and Asia, and technology companies are skidding after The Wall Street
Journal reported that the Trump administration plans to limit high-tech exports
to China and will limit Chinese investment in American technology companies.
Harley-Davidson is falling after it said it will shift the production of some
motorcycles to Europe in response to taxes the EU put on U.S. exports.
KEEPING SCORE: The S&P 500 index shed 27 points, or 1 percent, to 2,727 as
of 10 a.m. Eastern time. The Dow Jones Industrial Average lost 275 points, or
1.1 percent, to 24,303. The Nasdaq composite fell 107 points, or 1.4 percent,
to 7,585. The Russell 2000 index of smaller-company stocks slid 21 points, or
1.3 percent, to 1,663.
US-CHINA TENSIONS: Chipmakers took losses after the Wall Street Journal said
the Trump administration will limit technology exports to China as well as
investment by China. China is attempting to become a global leader in
biotechnology, electric vehicles and other industries, and the report said the
administration wants to slow Beijing's progress in those areas. President
Donald Trump has threatened to put tariffs on hundreds of billions of dollars
in Chinese imports over complaints Beijing steals or pressures foreign
companies to hand over technology and is also pressuring China to buy more
Chipmaker Micron Technology, which gets half its revenue from China, lost 5
percent to $54.33 and Intel dipped 1.5 percent to $51.69. Nvidia lost 2.9
percent to $243.55. All 72 of the technology companies listed on the S&P 500
were trading lower.
OVERSEAS: Germany's DAX fell 1.7 percent and London's FTSE 100 gave up 1.6
percent. France's CAC 40 shed 0.9 percent. Hong Kong's Hang Seng lost 1.3
percent. Tokyo's Nikkei 225 shed 0.8 percent and in South Korea the Kospi was
HARLEY SHIFTS: Harley-Davidson will move the production of motorcycles
headed for Europe from the U.S. to overseas facilities. On Friday the European
Union put tariffs on motorcycles from the U.S. as well as other goods like
bourbon, peanut butter and orange juice. The EU tariffs on $3.4 billion worth
of U.S. products are retaliation for duties the Trump administration is
imposing on European steel and aluminum.
Harley said in a regulatory filing Monday that EU tariffs on its motorcycles
exported from the U.S. jumped between 6 percent and 31 percent, which
translates into an extra $2,200 per average motorcycle exported from the U.S.
to the EU.
Its stock fell 1.4 percent to $43.59.
DEALS: Broadcaster Gray Television jumped 10.9 percent to $14.20 after it
said it will combine with Raycom in a deal the companies valued at $3.6
billion. Campbell Soup rose 7.4 percent to $41.44 after the New York Post said
Kraft Heinz is interested in buying the company. Kraft rose 1.8 percent to
ADRIFT: Cruise lines dropped after a disappointing quarterly forecast from
Carnival. Carnival fell 8.9 percent to $57.85 while Royal Caribbean gave up 4.5
percent to $106.52 and Norwegian Cruises lost 5.3 percent to $49.16.
BONDS: Bond prices were little changed. The yield on the 10-year Treasury
note stayed at 2.89 percent.
ENERGY: Benchmark U.S. crude gained 1 percent to $69.24 per barrel in New
York. It climbed 4.6 percent Friday, its biggest one-day gain since late 2016.
Brent crude, used to price international oils, dropped 1.7 percent to $74.03
per barrel in London.
OPEC countries agreed to produce more oil Friday, but investors aren't sure
the cartel will produce as much crude oil as it says it will.
CURRENCY: The dollar fell to 109.65 yen from 109.91 yen. The euro rose to
$1.1689 from $1.1663.